Bruna Pugialli, Postdoctoral researcher, São Paulo School of Economics (FGV/EESP)
Early career wages and test scores in Pernambuco State
Our study investigates the association between formal labor market wages and test scores in Brazil. Although we are currently working on expanding the analysis for other Brazilian states (namely, São Paulo and Ceará), I will present the results for the Pernambuco state. First, we document a small but positive correlation between Math test scores and early career wages for both men and women. However, our evidence suggests that Portuguese test scores do not relate to future earnings in the formal labor market. To understand the relevance of local labor markets in explaining these patterns, we present heterogeneous effects by some municipalities' and firms' characteristics. Finally, we investigate potential channels to explain the observed results, such as selection issues and higher schooling levels.